Egypt’s Stocks Tumble on Morsi Decree

Your News Companion by Ben Mathis-Lilley
Nov. 25 2012 11:48 AM

Egypt’s Stocks Tumble as Protests Over Morsi Decree Continue

156923534
An Egyptian protester holds a tear gas canister during clashes with Egytptian riot police in Tahrir Square on Sunday

Photo by AFP/Getty Images

Egypt’s benchmark stock index plunged 9.6 percent on Sunday, the biggest drop since January 2011, illustrating how the unrest that has taken hold of the country is spreading into the economy and decimating hope that stability could be quickly restored, reports Bloomberg. Protests against President Mohammed Morsi’s decree that essentially gave himself almost absolute power without oversight from the judiciary continued on Sunday. Riot police fired tear gas at protesters in the iconic Tahrir Square in Cairo, a reminder of the revolution that toppled Hosni Mubarak in February 2011, notes Reuters.

Several dozen protesters are now refusing to leave Tahrir until Morsi rescinds the decree, reports the Associated Press. The clashes of recent days are seen as a preview of what the country can expect Tuesday, when both sides have called for big demonstrations. Anger continues to grow, particularly because the brutality shown by police officers against protesters appears to rival what was seen in the Mubarak days. “Appalling police brutality against demonstrators continues unabated,” Nobel peace laureate Mohamed ElBaradei wrote on Twitter. “Mubarak's repressive regime alive and well.”

Advertisement

Analysts caution that if Morsi doesn’t manage to quickly defuse the situation he could have a bigger governability problem in his hands. He may have unwittingly given a gift to the opposition, helping secularists and youth groups unite under one banner, something they haven’t been able to do since Mubarak’s ouster, notes Bloomberg.

Sunday’s stock market plunge illustrates how Egypt’s deep political divisions will undoubtedly hurt its still-ailing economy. The plunge will have "a lot of impact on other economic indicators," such as tourism and foreign investment, a Cairo financial analyst tells Al Jazeera. Trading in the stock market was suspended for 30 minutes as shares plunged, but the drops continued as soon as trading resumed.

Daniel Politi has been contributing to Slate since 2004 and wrote the "Today's Papers" column from 2006 to 2009. You can follow him on Twitter @dpoliti.

TODAY IN SLATE

Medical Examiner

Here’s Where We Stand With Ebola

Even experienced international disaster responders are shocked at how bad it’s gotten.

Why Are Lighter-Skinned Latinos and Asians More Likely to Vote Republican?

A Woman Who Escaped the Extreme Babymaking Christian Fundamentalism of Quiverfull

The XX Factor
Sept. 22 2014 12:29 PM A Woman Who Escaped the Extreme Babymaking Christian Fundamentalism of Quiverfull

Subprime Loans Are Back

And believe it or not, that’s a good thing.

It Is Very Stupid to Compare Hope Solo to Ray Rice

Building a Better Workplace

In Defense of HR

Startups and small businesses shouldn’t skip over a human resources department.

How Ted Cruz and Scott Brown Misunderstand What It Means to Be an American Citizen

Divestment Is Fine but Mostly Symbolic. There’s a Better Way for Universities to Fight Climate Change.

  News & Politics
Over There
Sept. 22 2014 1:29 PM “That’s Called Jim Crow” Philip Gourevitch on America’s hypocritical interventions in Africa.
  Business
Moneybox
Sept. 22 2014 5:38 PM Apple Won't Shut Down Beats Music After All (But Will Probably Rename It)
  Life
Dear Prudence
Sept. 22 2014 3:33 PM Killing With Kindness My in-laws want to throw me a get-well-from-cancer bash. There’s no way I can go.
  Double X
The XX Factor
Sept. 22 2014 7:43 PM Emma Watson Threatened With Nude Photo Leak for Speaking Out About Women's Equality
  Slate Plus
Slate Plus
Sept. 22 2014 1:52 PM Tell Us What You Think About Slate Plus Help us improve our new membership program.
  Arts
Brow Beat
Sept. 22 2014 9:17 PM Trent Reznor’s Gone Girl Soundtrack Sounds Like an Eerie, Innovative Success
  Technology
Future Tense
Sept. 22 2014 6:27 PM Should We All Be Learning How to Type in Virtual Reality?
  Health & Science
Science
Sept. 22 2014 12:15 PM The Changing Face of Climate Change Will the leaders of the People’s Climate March now lead the movement?
  Sports
Sports Nut
Sept. 18 2014 11:42 AM Grandmaster Clash One of the most amazing feats in chess history just happened, and no one noticed.